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For the 24 hours to 23:00 GMT, the AUD slightly declined against the USD and closed at 0.7586.

LME Copper prices rose 0.7% or $48.5/MT to $6764.0/MT. Aluminium prices rose 1.2% or $24.0/MT to $2106.0/MT.

In the Asian session, at GMT0400, the pair is trading at 0.7588, with the AUD trading marginally higher against the USD from yesterday’s close.

The pair is expected to find support at 0.7577, and a fall through could take it to the next support level of 0.7565. The pair is expected to find its first resistance at 0.7604, and a rise through could take it to the next resistance level of 0.7619.

Next week, market participants would eye a speech by the Reserve Bank of Australia’s (RBA) Governor, Philip Lowe, along with the minutes of the latest RBA monetary policy meeting, both due next week.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the EUR slightly declined against the USD and closed at 1.1772.

On the macro front, the Euro-zone's final consumer price index (CPI) climbed 1.4% on an annual basis in October, confirming the preliminary print and pointing to subdued inflationary pressures in the common currency region. The CPI had risen 1.5% in the previous month.

The greenback advanced against most of its major counterparts, after the US House of Representatives approved its version of tax reform proposals that includes $1.5 trillion in tax cuts for businesses and individuals.

On the data front, industrial production in the US jumped more-than-expected by 0.9% on a monthly basis in October, advancing by the most since April 2017, as factory activity recovered from the impact of Hurricanes Harvey and Irma. Market had expected industrial production to rise 0.5%, after recording a revised gain of 0.4% in the previous month. Further, the nation's manufacturing production rose 1.3% MoM in October, topping market consensus for an increase of 0.6% and following a revised rise of 0.4% in the prior month. Additionally, the nation's NAHB housing market index unexpectedly advanced to a level of 70.0 in November, hitting its highest level in eight months and confounding market expectations for a fall to a level of 67.0. In the prior month, the index had registered a reading of 68.0.

On the contrary, the number of Americans filing for fresh jobless claims unexpectedly rose to a 6-week high level of 249.0K in the week ended 11 November, against market anticipations for a drop to a level of 235.0K. Initial jobless claims had recorded a level of 239.0K in the previous week. Moreover, the nation's Philadelphia Fed manufacturing index fell to a level of 22.7 in November, higher than market expectations for a drop to a level of 24.6. The index had registered a reading of 27.9 in the prior month.

In the Asian session, at GMT0400, the pair is trading at 1.1809, with the EUR trading 0.31% higher against the USD from yesterday's close, as the greenback declined, on reports that investigators into possible Russian interference in the US presidential election issued a subpoena to campaign officials last month for documents.

The pair is expected to find support at 1.1770, and a fall through could take it to the next support level of 1.1731. The pair is expected to find its first resistance at 1.1835, and a rise through could take it to the next resistance level of 1.1861.

Going ahead, a speech by the European Central Bank (ECB) President, Mario Draghi, scheduled in a few hours, will attract significant amount of market attention. Additionally, the US housing starts and building permits data both for October, slated to release later in the day, will be on investors' radar.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the GBP rose 0.18% against the USD and closed at 1.3193, on the back of better-than-expected UK retail sales data.

Data showed that Britain's retail sales rebounded more-than-expected by 0.3% on a monthly basis in October, suggesting that consumer spending is likely to propel economic growth in the final quarter of 2017. In the prior month, retail sales had recorded a revised drop of 0.7%, while investors had envisaged for a rise of 0.2%.

Separately, the Bank of England (BoE) Governor, Mark Carney reassured that the central bank will probably need to hike interest rates a couple more times over the next few years, provided the British economy improves as expected. Further, Carney vowed that the central bank will do whatever it can to support the economy in the event of any Brexit shock and would remain “nimble enough” to control inflation.

In the Asian session, at GMT0400, the pair is trading at 1.3235, with the GBP trading 0.32% higher against the USD from yesterday's close.

The pair is expected to find support at 1.3165, and a fall through could take it to the next support level of 1.3096. The pair is expected to find its first resistance at 1.3274, and a rise through could take it to the next resistance level of 1.3314.

Amid no major macroeconomic releases in the UK today, investors would look forward to the release of second estimate of UK's 3Q GDP, scheduled next week.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.22% against the JPY and closed at 113.11.

In economic news, Japan’s final machine tool orders rose 49.8% YoY in October, slightly less than the preliminary print indicating an advance of 49.9%. Machine tool orders had registered a rise of 45.00% in the previous month.

In the Asian session, at GMT0400, the pair is trading at 112.52, with the USD trading 0.52% lower against the JPY from yesterday’s close.

The pair is expected to find support at 112.17, and a fall through could take it to the next support level of 111.82. The pair is expected to find its first resistance at 113.10, and a rise through could take it to the next resistance level of 113.68.

Moving ahead, traders will direct their attention to Japan’s flash Nikkei manufacturing PMI, all industry activity index and adjusted merchandise trade balance data, all due to be released next week.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD rose 0.48% against the CHF and closed at 0.9940.

In the Asian session, at GMT0400, the pair is trading at 0.9917, with the USD trading 0.23% lower against the CHF from yesterday’s close.

The pair is expected to find support at 0.9888, and a fall through could take it to the next support level of 0.9858. The pair is expected to find its first resistance at 0.9946, and a rise through could take it to the next resistance level of 0.9974.

Moving ahead, market participants await a speech by the Swiss National Bank President, Thomas Jordan along with the release of Switzerland’s trade balance figures, both scheduled next week.

The currency pair is trading between its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD declined 0.11% against the CAD and closed at 1.2754.

Macroeconomic data revealed that Canada's manufacturing shipments unexpectedly advanced 0.5% on a monthly basis in September, defying market expectations for a fall of 0.5%. In the previous month, manufacturing shipments had recorded a revised rise of 1.4%.

In the Asian session, at GMT0400, the pair is trading at 1.2726, with the USD trading 0.22% lower against the CAD from yesterday's close.

The pair is expected to find support at 1.2699, and a fall through could take it to the next support level of 1.2671. The pair is expected to find its first resistance at 1.2769, and a rise through could take it to the next resistance level of 1.2811.

This afternoon will bring a crucial Canadian release, namely the consumer price inflation data for October.

The currency pair is trading below its 20 Hr and 50 Hr moving averages.

Currency pair EUR/USD

EUR/USD retraced back to and bounced at the 1.1750 support level. Price then broke above the resistance trend line (dotted red) and therefore could be extending the wave 3 (pink).

The EUR/USD bounced at the 50% Fibonacci level of wave 4 (purple). There could be a wave 5 (purple) continuation as long as price stays above the support trend line (blue).

Currency pair GBP/USD

The GBP/USD broke above the resistance (dotted orange) trend line and moved up to retest the higher Fibonacci level at 1.3260. A breakout above the top (100% Fib) or below the support trend line (green) is needed before a larger directional move can be expected.

The GBP/USD has expanded the choppy correction via a complex correction of WXY (green) and price has now reached the top of the channel (red), which could create a bearish bounce back to test the bottom of the channel.

Currency pair USD/JPY

The USD/JPY's is moving lower as part of wave 2 or wave B (light purple). The 38.2% Fibonacci support level could be the next target of the bearish price action at 111.83.

The USD/JPY completed an ABC (blue) within wave B (blue) and broke below support (dotted blue) to continue with wave C (blue). Price is now building a falling wedge chart pattern (green/red lines). Price will need to break below support if it is able to accelerate the downtrend.

SPX Short-Term Elliott Wave view suggests that the rally to 2597.02 ended Intermediate wave (3). Intermediate wave (4) pullback ended at 2557.45 as a double three Elliott Wave structure. Down from 2597.02, Minor wave W of (4) ended at 2566.33, Minor wave X of (4) ended at 2587.66, and Minor wave Y of (4) ended at 2557.45. Up from there, the rally appears to be unfolding as an impulse Elliott Wave structure. Minute wave ((i)) ended at 2572.84, Minute wave ((ii)) ended at 2563.3, and Minute wave ((iii)) ended at 2590.09. Expect Index to see another leg higher in Minute wave ((iv)) of 1 before ending cycle from 11/15 low. Afterwards, Index should pullback in Minor wave 2 to correct cycle from 11/15 low in 3, 7, or 11 swing before the rally resumes. A break above Intermediate wave (3) at 2597.02 will add conviction that Intermediate wave (4) has ended at 2566.3. We don’t like selling the Index.

SPX 1 Hour Elliott Wave Analysis

Key Points:

• Price action forming a wedge pattern.
• RSI Oscillator continuing to rise within neutral territory.
• Watch for a move towards the supply zone within the coming week.

The New Zealand Dollar has been under siege of late as a range of political upsets have seen the pair facing a steady wave of depreciation. Subsequently, price action has tumbled from around the 70 cent handle, in late October, all the way to its present level at 0.6861. However, the question remains if the pair will continue to decline over the next few weeks as the New Zealand Labour Party continues to showcase their new social and economic policies.

Thankfully, the answer to the above question lays in the technical aspects of the pair’s chart with price action having formed some interesting patterns over the last few days. In fact, looking at the 4-hour timeframe shows a relatively clear low as having been formed on the 27th. Subsequently, the NZDUSD has been slowly creeping its way higher over this period and the lows are now starting to get higher.

Additionally, there is a relatively clear descending wedge formation on the 4-hour timeframe which would seem to suggest that we might have recently seen the full extent of the bearish push. In fact, the RSI Oscillator largely backs this view with the indicator steadily moving higher, within neutral territory, suggestive of further upside action to come.

Subsequently, the most likely scenario for the coming week is for price action to decline back towards the bottom of the wedge pattern, before commencing a sharp move towards the supply zone around the 0.6870 mark. At this level, a consolidation or reversal is equally likely and all will be off. However, any challenge to this level could see a solid bid form which would take the pair towards the top of the wedge.

Ultimately, the full extent of the shock of a labour party win appears to have run its course and the NZD’s valuation is expected to stabilise itself over the next few days. Subsequently, don’t expect too much negativity, at least in the short term, from the 'left wing labour' factor.

STOCKS

Dow (23458.36, +0.80%) has bounced back sharply from above 23200 levels contrary to our expectation of testing slightly lower levels before resuming the bounce. While there is still scope to test 23000 on the downside, while that holds a rally to 23600-23700 looks likely in the medium term.

Dax (13047.22, +0.55%) managed to stay above 12800 and has traded in the narrow 13000-13050 region yesterday. While above 12800, a test of 13200 or higher looks possible.

Nikkei (22458.28, +0.48%) has moved up sharplyin the last couple of sessions and could re-attempt levels of 23000 and higher. Although Dollar Yen (112.55) is trading below 114.50-113.00 levels, Nikkei looks strong just now for the near term.

Shanghai (3385.64, -0.40%) continues to trade in the 3380-3450 region as expected. Range bound trade is likely to continue in the coming sessions.

Immediate support on the daily candles is holding well for Nifty (10214.75,+0.96%). While above 10100, there is scope for a rise towards 10400 in the coming sessions. Near term looks bullish while above 10100

COMMODITIES

Gold (1283.34) is trying to eventually move up towards 1300. Near term looks bullish.

Brent (61.16) is trading above immediate support of 61.00-60.85 levels mentioned yesterday. If that holds, price could bounce back towards 62-63 in the near term; else a break below 60.85, if seen could open up chances of testing 60 in the medium term.

WTI (55.25) is quiet above 54.80 and may remain stable for a couple of sessions before bouncing back towards 56 and higher. A break below 54.90/80, if seen could open up chances of 54-53 in the next 2-weeks.

Copper (3.0605) is almost stable. While below 3.10, there is some scope of testing 2.95-3.00 in the near term.

FOREX

EURO (1.1817) has broken above immediate down channel seen in the 3-day and weekly candle chart. While above 1.1780-1.1800, there is scope of testing higher levels of 1.1850-1.1900 before again coming off towards 1.17 or lower in the medium term.

Dollar-Yen (112.50) could test 112.00-111.60 levels if it does not immediately bounce back from current levels. Decent support is visible at current levels but that will have to hold to push the price back towards 113.00 and higher.

The Euro-Yen (132.92) is trading within the broad 134-131 channel and is right in the middle just now. While resistance near 134 holds, price may come off towards 131 eventually.

The Pound (1.3236) is on a rise targeting 1.3250-1.3300 levels for the coming sessions from where a sharp rejection back towards 1.32 or lower is possible.

The Aussie (0.7593) has immediate support near 0.7560 and while that holds, the price could gradually start moving up towards 0.7622-0.7650. Failure to sustain above 0.7560 could take it lower to test 0.75.

Dollar-Rupee (65.33) could see strength today as the Asian currencies look positive. The increase in ratings of the sovereign bonds by Moddy could bring in significant strength in the Rupee may be towards 65.00 or lower. The Korean Won (1096.7) has strengthened sharply from levels near 1120 in the last 3-days and could possibly impact the Rupee also in the near term.

INTEREST RATES

The German-Us 10Yr (-1.97%) could move up to -1.96% to -1.95% in the near term taking up the Euro to slightly higher levels. Thereafter a corrective fall towards -1.98% or lower is possible indicating some correction in Euro as well in the medium term.

The US Bond yields are almost stable. The US-10Yr (2.35%) and US-30Yr (2.80%) have risen by 1bps and 2bps respectively. While immediate support holds, the yields are likely to move up soon towards 2.40% and 2.90% respectively.